Five Major Marketing Control Techniques
# A successful marketing strategy is critical to the overall success of a product or service. However, proper controls must be put in place to measure the strategy's effectiveness and to pinpoint areas where changes may be needed. Control techniques can include performing ongoing research and testing as well as keeping tabs on promotion and pricing.
# Marketing research involves the gathering and analyzing data to see if a company's products or services are meeting the needs of the marketplace. For example, the manufacturer of potato chips may conduct research to determine if customers are satisfied with their products. The company can then look for ways to improve the flavor or packaging to meet consumer needs.
# An important marketing control regarding new products is test marketing. Before spending large amounts of money to produce and market a new product, a company will test the product on a small scale by using focus groups or a limited distribution. This can help the company predict the success or failure of a product, and perhaps avoid making a costly mistake.
# Marketing managers use statistics to assess the success of a marketing strategy. In addition to sales volume, they will also look at their market share and compare it the competition. The managers will also determine their return on investment by examining overall sales in relation to the cost of marketing and production.
# Pricing may need to be adjusted to meet changes in the market or to maintain profitability. If a company's chief competitor implements a significant price reduction, the company may be forced to do the same to maintain market share. Conversely, if production costs rise, a company may be forced to increase prices to remain profitable.
# A company may also need to adjust its promotion or advertising strategy to change consumer perception and increase sales. For...